internship report on prime bank ltd bd

7/23/2019 Internship Report on Prime Bank LTD BD

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st

PART

(Overview of Prime Bank Ltd…………)

History, Official Organogram, Mission, Vision, Products and Services……



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Introduction

In the present world money is circulated all around the globe. Financial institutions mainly

Banks play a vital role in matching a depositors and lenders and channeling money and makingthe economy more efficient. Although the history of banking goes back to the 14th century in

Europe but banks are now everywhere. Banks in Bangladesh play a significant role compare to

other institutions. Although there are different types of banks specialized for different purposes

and with different brands and capital structure, they are regulated by standards such as the

BASEL standards (to keep a minimum amount of capital) BASEL II etc. Amongst the 49

commercial banks which operate in Bangladesh Prime Bank Ltd. has a unique position in the

minds of clients and regulatory bodies. It is one of the banks in Bangladesh which follows

international standard in Banking and Finance.

Commercial Banks in Bangladesh economy are to face an increasing competition for their

business in coming days, like any other emerging market economies. Their business is no longer

remain easier as they earlier. Nevertheless the banking sector occupies an important place in

Bangladesh because of its intermediary role; it ensures allocation and relocation of resources and

keeps up the momentum of economic activities. It plays an important role in the economic

development of the country and forms the core at the money market. In Bangladesh any

institution which accepts for the purpose of lending and investment, deposits of money from the

public, repayable on demand or otherwise, and is transferable by cheques, draft order or

otherwise, can be termed as a bank. The purpose of banking is thus to ensure transfer of money

from surplus unit to deficit units or in other words, to work as the repository of bank.

Background of the report

This internship report is originated as a partial fulfillment of the BBA program of School of

Business, Independent University, Bangladesh. This internship report is a mandatory

requirement of BBA completion. I have completed my 3 month internship from Prime Bank Ltd,

Wari Branch and this internship has helped me a lot to understand practical experience from



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corporate world. As an intern I have worked there under the general banking department of

Prime Bank Ltd, Wari Branch where I have worked under the Account Opening Section,

Clearing Section and Debit Card Section. But most of the time I have worked under Account

Opening and Clearing Section as the working load of that section is higher than other section. I

have discussed about my internship report topic with my supervisor and decided to do working

on Impact of emerging information technology on Auditing which I think one of the topic not

many student have done earlier. During my internship several IT auditors and employees from IT

Dept. has come to Wari Branch for several reasons. During their visit I have discussed with them

about my internship report which has helped me a lot to do my internship report. And also I have

discussed with the Senior Executive Officer of Wari Branch about my internship report helping

me a lot for the completion of this internship report.

Organization Overview and History of Prime Bank Ltd

Prime Bank Ltd. is a Bangladesh based financial institution that provides banking services.

Prime Bank was created and commencement of business started on April 17, 1995. The sponsors

are reputed personalities in the field of trade and commerce and their stake ranges from shipping

to textile and finance to energy etc.

As a fully licensed commercial bank, Prime Bank is being managed by a highly professional and

dedicated team with long experience in banking. They constantly focus on understanding and

anticipating customer needs. Prime Bank has already made significant progress within a very

short period of its existence. The bank has been graded as a top class bank in the country through

internationally accepted CAMELS rating. The bank has already occupied an enviable position

among its competitors after achieving success in all areas of business operation.

Prime Bank Ltd. is a fast growing private sector bank and the bank is already at the top slot in

terms of quality services to the customers and value addition for the shareholders. The bank

made satisfactory progress in all areas of business operation in 2014.



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Prime Bank Ltd. is one of the few banks permitted by the Bangladesh Bank in early 90’s. These

banks are known as the second generation banks and fortunate to remain immune from the bad

loan culture. Prime Bank was designed to provide all kinds of Commercial, Corporate and

Personal banking services covering all segments of society. Diversification of products and

services include Corporate Banking, Retail Banking and Consumer Banking right from industry

to agriculture, and real estate to software. Prime Bank provides commercial and investment

banking services to all types of customers ranging from small entrepreneur to big business firms.

Besides investment in trade and commerce, the bank participates in the socio economic

development through the participation in priority sectors like agriculture, industry, housing and

self- employment. Prime Bank Ltd. wants to establish, maintain and conduct all types of

banking, investments and businesses in Bangladesh and abroad with superior service, quality and

performance.

Management

In management the bank has a combination of highly skilled and eminent bankers of the country

of varied experience and expertise successfully led by Mr. Ahmed Kamal Khan Chowdhury,

Managing Director of Prime Bank Ltd. and other well educated and dedicated officers working

with missionary zeal for the growth and progress of Prime Bank Ltd.

Corporate information at a glance

Registered name Prime Bank Limited

Registered Head Office Adamjee Court Annex Building – 2 , 119-

120, Motijheel C/A, Dhaka-1000,

Bangladesh

Vice Chairman M.A. Khaleque

Khandker Mohammad Khaled



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Managing Director Mr. Ahmed Kamal Khan Chowdhury

Number of Branches 122

Corporate vision of Prime Bank Ltd.

To be the best private commercial bank in Bangladesh in terms of efficiency, capital adequacy,

asset quality, sound management and profitability having strong liquidity.

Corporate mission of Prime Bank Ltd.

To build Prime Bank Limited into an efficient, market-driven and customer focused institution

with good corporate governance structure.

Continuous improvement of our business policies, procedure and efficiency through integration

of technology at all levels.

Functions of Prime Bank Ltd.

The main task of Prime Bank Ltd. is to accept deposits from various customers through

various accounts.

Provide loans and credit to the people on various terms and conditions.

Prime Bank allows their customers to draw more than the deposit in the bank. Bank

charges interest on overdraft.

It also gives loan against immovable property and interest is charged by the bank.

Prime Bank also creates loan deposits for customers.

Prime Bank transfers money by Demand Draft (DD), Pay Order and through Telegraphic

Transfer/BEFTN



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Prime Bank also doing the transaction of bill of exchange, cheque etc. on behalf of the

customers.

Prime Bank Ltd. also assists in the foreign exchange by issuing Letter of Credit (LC).

Prime Bank offers several deposit schemes for its customers.

Prime Bank Foundation operated by Prime Bank Ltd. provides scholarship opportunities

for under privileged and financially instable students for their education.

Prime Bank ensures the securities of valuable documents to clients.

Prime Bank provides locker service to its customers.

Official Organogram of Prime Bank Ltd.

Chairman

Board of Directors

Executive Committee

Managing Director

Additional Managing Director

Deputy Managing Director

Senior Executive Vice President



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Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

First Assistant Vice President

Senior Executive Officer

Executive Officer

Principal Officer

Senior Officer

Management Trainee Officer

Junior Officer



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PPrroodduuccttss aanndd SSeerrvviicceess

The bank provides a broad range of financial services to its customers and corporate clients. The

products and services Prime Bank offers are:

Contributory Savings Scheme (CSS)

Double Benefit Deposit Scheme (DBDS)

Monthly Benefit Deposit Scheme (MBDS)

Education Savings Scheme (ESS)

Prime Millionaire Scheme (PMS)

Lakhopati Deposit Scheme (LDS)

LaksmaPuron Deposit Scheme (LPDS)

Account 150%

Brighter Tomorrow Deposit Scheme (BTDS)

Nobagoto Deposit Scheme (NDS)

Savings Deposit Account

Current Account

Fixed Deposit Receipt (FDR)

STD Account

Multi Currency Account

Foreign Currency Deposit Account

Non Resident Taka Account

Non Resident Foreign Currency Account

Non Residents investors Account

Consumer Credit Scheme

Lease Finance

House Building Finance

Retail SOD (FO)

Inward & Outward Remittance

Locker Service

Online Banking



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General Banking Department

General Banking is the starting point among all the banking operation. This department provides

services those customers who come frequently to bank and those customers who come one time

to bank for enjoying ancillary services. It is the department which provides day to day services to

customers. Every day it receives deposits from customers and fulfills their demand for cash by

honoring cheques. It opens new accounts, transfer funds, issue pay order and bank drafts, receive

outward clearing cheque for collection, provide statement to customers, deliver cheque book to

customers etc.

Cash Management Department

Cash Department handles liquidity strength of a bank. This department is so sensitive because it

always deals with liquid money. It is the most important department that is contributing to the

earnings of a bank in terms of goodwill and customer satisfaction with their quality and services.

Cash department of Prime Bank Ltd. Wari branch is beautifully designed and decorated. There is

also electronic counting machine which make counting of money much easier and faster and

computers with online system in this department. There is also a small Automated Teller

Machine at cash department of Prime Bank Ltd, Wari branch, so that customers can be able to

withdraw money by using their debit or credit card from bank. Balance of account can be seen

within a second. So cash payment can be made very quickly. In cash department there are mainly

two types of services:

Cash Receipt

Cash Payment

On-Line Banking Services

Prime Bank Ltd. has 122 branches all around Bangladesh and all transactions among the

branches are done through online. The bank has set up a Wide Area Network (WAN) across the



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country to provide online branch banking facility to its valued customers. Prime Bank uses

customized software for its day to day transaction. Under this service a customer will be able to

do following types of transactions:

Cash deposit at any branch of the bank irrespective of the location.

Cash withdrawal from any branch of the bank irrespective of the location.

Transfer from one account to other account from any branch.

Account opening/Front Desk Department

The backbone of a bank is the Account opening/Front desk Department of a bank. Responsibilityof the customer service starts with opening of new account in the name of new customer. From

this department the relationship between customers and bank has been started. By opening an

account bank provide opportunity to its customers to enjoy all the facilities provided by a bank.

The activities of the Account opening /Front desk Department of Prime Bank Ltd. include:

Opening of new accounts

Opening several schemes

Cheque Book issue

Debit card issue

Account transfer

Fund Transfer

Activation of dormant status

Encashment/close of deposit schemes

Stop payment of cheques.

Receive clearing cheque for collection

Account balance check

Provide notice to dormant account holder

Provide thanks/welcome letter to new account holder and their introducer

Provide transaction statement to customer

Provide Bank solvency and other certificate to customers



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Issue pay order for customers

Types of Account

Prime Bank has several types of deposits for its customers.

Savings Bank (SB) Account

The Savings account is basically for the small scale savers such as students, housewife and also

for service holder who wants to open a salary account. The main goal of this account is to

increase the savings habit of customers. Interest is also paid in this account. PBL offers 5.25%

interest rate for Savings account. The initial deposit of Savings account of PBL is 500 tk.

Current Deposit (CD) Account

Current Account only can be open for the purpose of business. Current account is basically for

business man. This account is most suitable for private individuals, traders, merchants, business

agent/dealers, importers and exporters, mills and factory owners, shop owners, limited

companies etc. For opening a current account minimum initial deposit of PBL is BDT 5000.along with the introductory reference. No interest is given at Current Deposit account. There is

no restriction on the numbers and amount of withdrawals in Current account. The bank also

provides overdraft facilities at Current account. The cancellation fee for Current account is 100

tk.

Short Term Deposit (STD) Account

This account is opened and operated for short time (7 to 89 days) and for specific purpose. It is

also an interest bearing account and where rate of interest is actually below the savings rate.

Generally this account is opened by the firms/person who wants liquidity some return

simultaneously for their deposits. One can withdraw his/her account on special notice. Prime

Bank Ltd. offers 8.75% interest rate for corporate customers on Short Term Deposit, where size



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of deposit is minimum 10 Cr. and for general customers PBL offers 3.00% on Short Term

Deposits.

Fixed Deposit Receipt (FDR) Account

Actually Fixed deposit is not an account. It’s a deposit receipt. It is popularly known as Time

Deposit. Because these deposits are not repayable at demand but they are withdraw able subject

to a period of notice. Individuals, Firms, Companies, Association can open this account. In FDR

deposit is generally taken for a fixed period of time such as 3 months, 6 months, 1 year. Loan can

also be sanctioned at FDR at Prime Bank Ltd.

Interest rates of FDR at Prime Bank Ltd. are as follows:

SL No. Period Rate of Interest

01 01 Month 7.00%

02 03 Month 8.25%

03 06 Month 8.25%

04 01 Year or above 8.75%

Letter of Thanks

When a new customer open an account and after completing all the formalities of opening an

account a letter of thanks is send to the mailing address of the accountholder. A thanks letter is

also send to the address of the introducer who introduce the account holder for opening an

account. This letter is generally sent to customers to verify the mailing address of customers. Ifthis thanks letter is undelivered to customer and if account holder is not returned this letter to

bank then cheque book will not be delivered to customer and no service will be provided

to customers unless or until he/she will return the thanks letter to bank. If this account is

specially verified by the branch manager then thing will be different.



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Cheque Book Issue

When the customer comes to bank with acknowledgement letter then the bank provides the

cheque book. It will take three to four days from the days bank receive the

acknowledgement/thanks letter from the new account holder to provide a cheque book to the

customer. In savings account charge for each and every new cheque book is 46 Tk. at Prime

Bank Ltd. On the other hand for Current Account charge for new cheque book is 196 Tk. at

Prime Bank Ltd.

Debit Card issue

Prime Bank Ltd. provides Master Debit Card facilities to its customers. It’s an alternative of

cheque book. By using debit card a customer can withdraw money from his/her account from

ATM booth without coming to the bank. Master Debit Card also allows customers free balance

enquiry facilities from any booth of Prime Bank Ltd and DBBl Booth. Master Debit Card also

makes shopping much easier and convenient. Prime Bank Ltd. has 1300 ATM booth all over

Bangladesh. If a customer demand Debit card along with the cheque book, the bank asks them to

fill a form and inform the customer about the time required to deliver the Master Debit Card.

PBL usually takes 7-10 days to deliver Master Debit Card to customers.

Account Transfer

Account Opening/Front Desk department also transfer account from one branch to another

branch on customer request. The bank follows the following steps to transfer account:

Application for account transfer about why he/she wants to transfer his/her account from

one branch to another branch.

The customer should need to return the unused cheque books along with the requisition

slip and other materials (if any) during the transfer of his/her account.

Inform the respective branch accountholder want to transfer.



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Forward all the document customer gave during the opening of his/her account.

Verification of signature and approval of operation head of his/her account opening

branch.

Close the account and his/her account opening form with all document is send to the

respective branch customer want to transfer through courier.

Account Closing

Account closing is also done by account opening/front desk department of Prime Bank Ltd. The

customer may want close his/her account at any time giving notice to the bank. On the other

hand the bank also have the right to close customer account giving reasonable notice for the

action or without any notice if the conduct/transaction of the account is not satisfactory to the

bank or any other reason(s). In either case bank will charge a minimum closing charge from the

customer’s account.

Bank Account Statements and certificates

All types of bank statements and certificates such as Account Statement certificate, bank

solvency certificate, income tax certificates, and B.O certificates are issued by Account opening

Dept. of a bank in favor of the customer. On customer request bank provides statement and

certificates. A charge has been realized to provide and statement and certificate to customers at

Prime Bank Ltd.

Remittance Department

Remittance is one of the important items of a bank. Now a day a business person can’t run his

business without bank remittance facilities. Sending money from one place to another place

through banking channel is called remittance. This dept. helps the bank for domestic and

international transactions of their clients.



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Clearing Department

Clearing Department of a bank performs one of the most important jobs of general banking

division. As such, the clearing department ensures the receipt and transfer on payment on behalf

of its customers. The activities of clearing department are sensitive because here credibility of

the bank to the customers relies on the smooth, efficient and effective functioning of the

department. This clearing department has three main jobs:

1. Inward Cheque clearing

2. Outward Cheque clearing

3. Attending House

Inward Cheque Clearing

Inward Cheques are those which are placed by different bank branches and which are issued by

the account holder of that very branch. Suppose when Prime Bank Ltd. is send to other person of

other bank, the other person bank will do the same thing to claim money from Prime Bank Ltd.

with the same procedure like inward clearing of that bank. In other word, Inward cheque for a

particular bank branch are those which they receive from the Bangladesh Automated Cheque

Processing System (BACPS) and for which branch customers account will be debited.

Outward Cheque Clearing

Outward cheques are those which are deposited in particular branch of a bank and which are

issued by the account holder of other banks. When any branch of Prime Bank Ltd. receives a

cheque from other banks to collect money then the cheque is called Outward clearing cheque. In

other words, Outward cheques are those which a bank branch places to the Bangladesh

Automated Cheque Processing System (BACPS) and for which the bank customer’s account will

be credited on realization of fund through clearing.



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Attending House

Bangladesh Bank conducts this job of clearing house named HOUSE. This is done twice a day

First House and Return House. First House is to deliver cheque and collect cheque from other

banks. Return House is to return the honored cheque.

Note: Bangladesh Bank keep separate A/C for the entire bank and settles the balance considering

the flow of cheque in both ways that is Inward & Outward.

As soon as the principal branch gets the clearance it sends an Inter Branch Transaction Advice

(IBTA) to the branch, who then sent the cheque for collection. Receiving the IBTA is considered

as clearance for the payment to the party.

Cost of Clearing

The collection cost of outward clearing cheque normally varies at Prime Bank Ltd. If the amount

of outward clearing cheque is between 0 to 500000 tk. then the clearing charge is 10 tk. On the

other hand if the amount of outward clearing cheque is more than 500000 tk. then clearing

charge is 25 tk. In other word, for normal value clearing charge is 10 tk. and for high valueclearing charge is 25 tk. Amount between 0 to 500000 tk. is considered as normal value and

anything more than amount 500000 tk. is considered as high value at clearing.

[

LBC

The word LBC means Local Bills for Collection. It is applied on transaction between inter

branch for issuing Pay Order Cheque /Demand Draft Cheque from one branch to another branch

of the same bank. For ex. suppose Prime Bank, Wari Branch have issued a pay order cheque to

Mr. A. Suppose the customer give this pay order cheque to Mr. B. Mr. B has an account at PBL,

Mohakhali Branch. And Mr. B will give this pay order cheque to PBL, Mohakhali Branch for

crediting his/her account. But because pay order cheque has been issued by PBL, Wari Branch,



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now PBL, Mohakhali Branch have to collect the amount of this pay order from internal account

of PBL, Wari Branch. So PBL, Mohakhali Branch have to make LBC letter and send this LBC

with pay order cheque to the PBL, Wari Branch for collecting the amount of this pay order. After

collecting money from PBL, Wari Branch PBL, Mohakhali branch has credited the amount of

this pay order to the account of Mr. B.

IBC

The word IBC means Inward Bills for Collection. It is reverse of LBC. If we consider the

example of LBC I have mentioned earlier, for PBL, Mohakhali Branch pay order cheque is

considered as LBC and PBL, Wari Branch have to paid the amount the amount of pay order to

the internal account of PBL, Mohakhali Branch. So this pay order cheque is IBC for PBL, Wari

Branch. In simple word when transaction between two inter bank branches has happened, then

when Pay Order/Demand Draft is considered as LBC for one branch and at the same time the

same pay order cheque is considered as IBC for another branch.

OBC

The word OBC means Outward Bills for Collection. It is applied on transaction between two

different banks for issuing only Demand Draft. For example, suppose Prime Bank, Wari Branch

has issued a Demand Draft cheque to Mr. A. Suppose the customer give this DD cheque to Mr.

B. Mr. B has an account at Brac Bank, Dhanmondi Branch. And Mr. B gives this DD cheque to

Brac Bank, Dhanmondi Branch for crediting his/her account. But because DD cheque has been

issued by PBL, wari Branch, now Brac Bank, Dhanmondi Branch have to collect the amount of

this DD from internal account of PBL, Wari Branch. So Brac Bank, Dhanmondi Branch has to

make OBC letter and send this OBC with DD cheque to the PBL, Wari Branch for collecting the

amount of this pay order. After collecting money from PBL, Wari Branch Brac Bank, Dhanmodi

branch has credited the amount of this pay order to the account of Mr. B. Becaue DD cheque

can’t be cleared at clearing house, that’s why bank have to collect the amount of DD cheque

through OBC.



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Dispatch Section

This section is responsible for receiving letter from outside of the bank and to send letter from

the bank. This section maintain a register book and for both sending and receiving letter. There

are two types of register are maintained in this section. They are:

1. Inward Dispatch Register

2. Outward Dispatch Register

Inward Dispatch Register is maintained for receiving letters from outside the bank and Outward

Dispatch Register is maintained for sending letter from the bank to outside. Dispatch division is

mainly operates the function of dispatching the intimation letter to the client, IBCA, IBDA,

OBC, LBC to other banks for their internal transactions with the banks. Dispatch section receives

the documents come from the negotiating bank, from the opening bank (in case of export), and

any other documents, letters, papers etc. In the name of principal branch (Prime Bank). The

officer engaged in this dispatch section maintains a register book to keep entries of those

documents. When the officer receives letter fr om outside the bank the officer give “Received”

seals on that paper and give his/her signature at received seal.

Other Services

Consistent with modern edge and competing in the competitive market, Prime Bank Ltd. has

introduced some banking services that are remarkable in a country like Bangladesh. The services

offered by the bank are as follows:

SWIFT service

The Prime Bank Limited is one of the first few Bangladesh Banks to obtain membership of

SWIFT (Society for Worldwide Inter-bank Telecommunication). SWIFT is members owned



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cooperative which provide a first and accurate communication network for financial transaction

such as Letter of Credit, Fund Transfer etc.

SMS Banking

Prime SMS gives 24 hour access to the key financial information of customers Prime Bank

account. It is the simplest way of finding out accountholders daily/month end balance. With

Prime SMS banking customers neither have to wait for their statement to arrive through mail nor

have or call up branches to inquire about their balance and last few transactions.

SME Lending

Job creation is essential and it must come from Small and Medium enterprise that will ultimately

dominate the private sector. During 2014 bank’s strategy was focused on customer convenience.

The Bank provided working capital loans to suppliers or dealers of large corporations or clusters

of small exporters of non-traditional items. The Bank’s total SME loan is 460 million.

Corporate Credit

PBL’s strategy to provide comprehensive service to the client’s of this segment who are large

and medium size corporate customers with expertise in trade finance and related services.

Besides trade finance bank are providing working capital finance, project finance and arranging

syndication for their corporate clients. Syndication and Structured finance unit of the bank

strengthened its footstep in consortium financial market and arranged a number of syndication

deals for its corporate clients.

Credit Card

In the year of 2005 Prime Bank Limited has launched VISA. Before that PBL started its credit

card operation in 1999 by introducing Master Debit Card. Now PBL has become the first local



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bank of the country to achieve principal membership of both the worldwide accepted plastic

money network i.e. Master card and VISA card. PBL has redesigned the credit card facility by

providing the incentive of “Free Life Insurance Coverage” for their valued cardholders to

mitigate the financial risks.

Institutional Banking

Prime Bank Limited provides a wide range of services to institutional clients, commercial,

merchant and central banks; brokers and dealers; insurance companies; funds and managers and

others. It provides relationship managers who are close to their customers and speak language.

The wide network of institutional banking facilities includes transaction, introduction, problem

solving and renders advice and guidelines on local trading condition.

Foreign Exchange Business

Over the years, foreign trade operations of the bank played a vital role in the overall business

development of the bank. The bank has established relationship with as many as 110 new foreign

correspondents abroad thereby raising the total of correspondents to 350. The bank has also

entered into remittance agreements with several banks and exchange houses and expects to

handle increased volume of remittance business over the near future.



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2

nd

PART

((IInntteerrnnsshhiipp OOuuttccoommee………………..))

LLooccaattiioonn,, DDuuttiieess,, RReessppoonnssiibbiilliittiieess,, pprroobblleemmss f f aacceedd dduurriinngg

iinntteerrnnsshhiipp………………..



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Location of Employment

I have completed my internship at Prime Bank Ltd. The HRM dept. of Prime Bank Ltd. assigned

me at PBL, Wari Branch which is situated at Old Dhaka to complete my 3 month internship.Because I also live at Old Dhaka, that’s why they assigned me at Wari Branch which is 15

minute walking distance from my house which really make my internship much more easier and

proper.

My Duties and Responsibilities at PBL, Wari Branch assigned by

my supervisor and competences and skills I have acquired during

internship

As an Intern I had started my internship program at Prime Bank Ltd, Wari Branch from 01st

February, 2015. The duration of my internship was 3 months. I have worked in different

departments of the office. My supervisor at the bank was Mr. S M Shahidul Islam, who is the

Assistant Vice President of PBL, Wari Branch. During my internship at Prime Bank Ltd, Wari

branch I got enough opportunity to work in different segments of general banking division. I am

heartily grateful to many employees in the branch who gave their valuable time to teach me

about various bank responsibilities during my 3 month internship. Without their help it’s really

impossible for me to successfully complete my 3 month internship. As a fresher in the corporate

world those people who were appointed as an employee at PBL, Wari branch helped me a lot to

understand the corporate environment. Along with my supervisor I am also very thankful to two

Accounts opening /Junior Officer Mrs. Shaireen Jahan Shanta and Mr. Md. Nurul Islam for

giving their valuable time to teach me about various bank duties and responsibilities. From the

very first day they gave me valuable advice and gave me enough opportunities to learn

something new each and every day which can be very important for me in near future. From the

first day they introduced me with various papers and documents and told me about daily

important documents and activities. The learning environment at Prime Bank Ltd. was very



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pleasant and outstanding. So various kinds of skills and knowledge I have learned during my

internship/my duties and responsibilities at Prime Bank, Wari Branch have been listed below:

This was the first time I got an opportunity to work at corporate world, so by working inthis corporate world I got an opportunity to know banking corporate culture practically.

Dealing with the customers.

Have learned how to give them quick service.

Have learned Account opening procedure of Savings Account, Current Account, Fixed

Deposit Receipt (FDR) and all the deposit schemes of Prime Bank Ltd.

Filling up the account opening form and what are the documents are needed for opening

an account.

Have learned how to fill KYC, SBC and FATCA form.

Have learned photo and signature scanning.

I learned how to keep all the data in the register especially for Pay Order there is a

specific register book which I had to maintain.

Have learned the procedure to deliver cheque book and Master Debit Card to customer.

Have learned how to keep all the data in the register book of OBC, IBC and LBC.

Have learned all the procedure of OBC, IBC and LBC.

Filling Pay Order form.

Providing valuable information to customers about Prime Bank Ltd. products and

services.

Have learned how to maintain all the information of Outward Clearing Cheque to

Outward Clearing Register.

Have learned how bank provide remittance to its customers.



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Have collected outward clearing and transfer cheque from customers.

Have collected all the letters, documents come from outside the bank and keep entry of

all the inward letters and documents in Inward Dispatch register.

Have learned all the procedure of Outward Clearing Cheque and how the amount of

Outward Clearing Cheque has been credited to the account of the account holder.

How to calculate charge of issuing cheque book which is deducted from customer’s

account for issuing cheque book.

Have learned authorization procedure of Account Opening form Pay Order cheque,

Transfer cheque and also authorization procedure for issuing cheque book.

Have also learned how to maintain Inward dispatch and Outward dispatch register.

Have learned to speak, function and work in a corporate way.

At the end of my internship I can say I had learned a lot of practical knowledge during my 3

month internship which is completely different from academic knowledge. This practical

experience will definitely help me a lot in future when I will intend to enter in the corporate

world specially banks.

Problems faced during internship

Honestly speaking, I have not faced any problem during my 3 month internship at Prime Bank

Ltd, Wari branch. At the beginning I have faced some problems to adjust with new corporate

environment and to understand everything. But after one week I have completely adjusted withthis new corporate environment and with my assigned duties and responsibilities which made my

internship much easier and better.



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rd

PART

((RReesseeaarrcchh PPaarrtt……………………))

IImmppaacctt oof f EEmmeerrggiinngg IInnf f oorrmmaattiioonn TTeecchhnnoollooggyy oonn AAuuddiittiinngg



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Introduction

The increase of the use of information technology and organizational computer use require

auditors to gather critical information more efficiently because organizations are now focusingon to provide more and more electronic evidence to auditors than traditional evidence (paper

documents). The use of information technology such as Electronic Data Interchange (EDI),

Client Server Computing, Internet, Image Processing System, Electronic Fund Transfer,

Outsourcing etc. end the era of traditional audit. Now the role of Information Technology in

production of audit engagement is of great interest with the rapid growth of IT application.

According to Mancuso (1997) as evidence become more electronic auditors should definitely

need to change their auditing techniques. That’s why the AICPA’s Auditing Standard Board

recently issued Statement on Auditing Standards (SAS) No. 80 and are now more focusing on

the use of computer related audit procedures (Jarvin Et. Al 2009), auditors training in

information system (Curtis et al. 2009) and the role of EDP from financial reporting perspective

(Grabski 2011, Morris 2011). Auditors should need to work with IT specialists, so that they

have proper IT capabilities for conducting auditing of different organizations. This IT

understanding becomes more crucial because auditors are now faced with accounting

transactions of different organizations entirely in electronic form without any support of paper

documentation (Martinov & Roebuck, 1998). So this emerging information technology is now

greatly changing the nature and impact of audit which was earlier hugely relied on paper

documents (Deshmukh & Romine, 2002). So auditors will need to change their traditional audit

approach by focusing more and more on an organization’s e -commerce strategy and perform

their audit by using computers (Good & Schultz, 2002; Natraj & Lee, 2002). Then it will be

easier for them to properly analyze all the electronic evidence provided by their computerized

clients and can accurately perform their audit procedures.



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Statement of the Problem

The increasing use of information technology by several organizations has changed the technique

of auditing. Now a day’s many organizations have transferred their manual work to computer

technology to do their work more effectively and efficiently. According to David Yang and

Liming Guan (2004) technology, information system and Electronic Data Processing (EDP)

have changed the way organizations conduct its business. That’s why auditing firms should have

proper basic knowledge of computer techniques, so that they can be able to perform their

auditing more effectively and efficiently.

Now the Electronization of business and proliferation of e-business lead to paperless accounting

(Bierstaker et.al., 2001., Vasarhelyi, 2002). This move towards technologies such as Electronic

Data Interchange (EDI) or Electronic Fund Transfer (EFT) caused the disappearance of

traditional audit. Auditors could no longer look for source documents in paper form and

increasingly had to perform tests and gather evidence electronically, thus their audit techniques

had to undergo some changes (Bierstaker et.al., 2001, Helms and Mancino 1998) . In this

modern era slowly and steadily the focus of the audit will shift from manual detection/traditional

audit to technology based prevention/electronic audit (Bierstaker et.al., 2001).

In order to be effective auditors must use the computers as an auditing tool, audit automated

systems and data, understand the business purposes for the systems and understand the

environment in which the systems operate. The other important uses for computers and networks

by auditors are in audit administration. By seeking new uses for computers and communications

auditors improve their ability to review systems and information and can manage their activities

more effectively. Because their client gives them more electronic evidence auditors should also

need to validate the accuracy of financial records and the reliability of systems which store,

transport and process those transactions. By doing this auditors can detect frauds and errors in

transaction.

However some audit firms still are in confusion about whether the investment in

computer/information technology would have any significant affect of the quality of their audit



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work. So this research is all about clarifying the impact of emerging information technology on

performing auditing.

Purpose of the study

The purpose of the study means is to explain everyone why we are doing the research and what

we want to find out through the research.

To evaluate the impact of emerging information technology on auditor’s work.

To identify whether the quality of auditing would positively be affected by the uses of

emerging information technology.

To identify the impact of Electronic Data Processing (EDP) tools such as Electronic Data

Interchange (EDI), Electronic Fund Transfer (EFT), Client Server Computing,

Outsourcing, Internet etc. on auditing.

To analyze whether electronic or computerized evidence give auditors enough evidence

to properly perform their auditing more effectively and efficiently. To provide auditors enough guidance about the proper use of all the EDP tools.

To provide auditors guidance about what types of electronic evidence auditors should

need to accumulate to perform their auditing procedures.

[[



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Literature Review

Electronic Data Interchange (EDI)

EDI is a component of electronic commerce, enables computers to communicate with one

another. According to Lee and Lim (2005) Electronic Data Interchange is a form of inter –

organizational electronic commerce where one trading partner establishes individual links with

one or more trading partners through a computer to computer electronic communication method.

EDI is defined as the electronic exchange of business transactions between companies from one

computer to another using an accepted standard format without human intervention (Jenkins,

1994). Ngai and Gunasekaran (2004) defined EDI as the technology by which business

documents such as (orders, invoices, shipping contracts, bills of lading, cheques and so on) are

transmitted electronically. The objective of EDI is to obtain time and cost efficiencies through

the direct exchange of data between clients (Sawabini, 2001). Value Added Networks (VAN’s)

have been the traditional facilitators providing networking connectivity among EDI trading

partners for the electronic transmission of EDI data (Angeles, Nath and Hendon, 1998).

According to Levi and Gantz (1987) EDI comprises three basic components: the application

software, translation software and communication network. The application software enables the

operations such as purchasing, order processing, account payable and account receivable. The

translation software provides the conversion of data into standard format, whether the

communication network ensures the delivery of information between trading partners. The speed

at which data is electronically exchanged is much faster than the traditional paper based method

and systems can be programmed for numerous operations and business applications such as

auditing.

According to Sokol (1995) the use of EDI can generate numerous benefits of the company such

as cost saving in areas like paper and postage, labor, inventory and shipping, improve customer

service, increase in productivity, enabling faster and more efficient information exchange with

trading partners and enhance internal processing as well as assist the company in gaining

competitive advantage.



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An overview of EDI information technology auditing issues

Because EDI is all about electronic evidence with no paper documents auditors has no choice but

to follow and adapt with this new auditing techniques. Auditing EDI is a part of information

technology auditing group responsibilities. This group responsibility is to provide support to the

general audit side on computer related aspects of their work by providing sufficient audit

coverage of the organization’s information technology systems (Conisar, 2009). EDI presents

auditors with several audit and control implications when auditing paperless accounting systems.

By doing auditing with EDI system auditors should become familiar with EDI systems and

should understand how business integrates various audit systems and their plans for future

growth. The auditor needs to understand how the entity conducts business using EDI and to

adjust audit procedures accordingly (www.journalofaccountancy.com/Issues/1998) .

EDI always presents challenges for auditors. As electronic system document storage, archiving

and data recovery are vastly different from paper based systems, the same holds true for the

types of audit trails that are available. Auditors must be able to understand and approve the new

procedures that EDI requires (Hansen and Hill 1989). Because paper document is not always

available auditors should demonstrate technical understanding. When reviewing controls over

EDI auditors should consider documentation, policies and procedures, techniques and

maintenance (H J Wagner, 2001). The lack of hardcopy documentation is both a significant

advantage and substantial vulnerability of EDI. While ability to organize and access large

amounts of information, and speed of transferring logical data as opposed to physical data are

clearly better with and electronic data system, the issue of maintaining data integrity becomes

more complicated (H J Wagner, 2001). Steps must be taken to ensure electronic evidence is

authentic, accurate, and secure and there is an appropriate audit trail for purposes of

accountability. To validate the accuracy of EDI evidence auditors first need to collect traditional

evidence from several departments and then collect evidence from software and then match both

the evidence to evaluate the accuracy and validity of electronic evidence. That’s why it is

important that both general audit and computer audit complement each other in providing

adequate audit coverage for the whole organization (Conisar, 2009).

http://www.journalofaccountancy.com/Issues/1998




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Client/server computing

The client/server computing model is one type of information technology that has gained recent

popularity. The client/server system can be defined as software architecture made up of both the

client and the server, whereby the clients always send requests while the server responds to the

requests send. Client/Server provides an inter process communication because it involves the

exchange of data from both the client and server where each of them performs different functions

Zhang H (2013).

Client/Server computing contains three identifiable modules: the client or front end system

containing the application software; a server or back end system containing the data; and the

middleware or the network that routes requests for data from the client to server (Roesh and

Henry, 1997).

One of the benefits of Client/Server computing is if in case of some break down data is lost it can

be recovered easily and efficiently. In Client/server system all the access, resources and data

security are controlled through the server http://www.unm.edu/.

Client/Server systems contain some specific risks also. Its environment duties are not always

appropriately segregated, mak ing some data easier to destroy. That’s why proper control isneeded in Client/server system to reduce these risks, by focusing on both general and system

controls. When auditing Client/server systems, auditors should examine the control environment,

including management’s involvement in setting policies, the organization structure, segregation

of duties, methods of storage and personnel policies-as well as the control structure, including

the accuracy of transactions and records, procedures followed for development of systems; and

data conversion and access (Roesh and Henry, 1997).

Outsourcing

Outsourcing is one type of information technology where a company involves external

consultants that perform data processing services including operations, programming and system

http://www.unm.edu/

http://www.unm.edu/

http://www.unm.edu/

http://www.unm.edu/



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analysis (www.journalofaccountancy.com/Issues/1998 ). In a sense Outsourcing is a particular

type of international trade. Outstanding rapidly develops establishing the beginning of a new

stage of international division of labor. Outsourcing generally refers to be procuring of material

inputs or services by a firm from “sources outside the firm” (Alexandrova, M., and A. Sarieva,

2007). Outsourcing differs from alliances, partnerships or joint ventures in that flow of resources

is one way, from the vendor to the outsourcer; typically, profit sharing or mutual contribution are

not in a common practice (Belcourt, 2006).

Outsourcing has several benefits. A variety of key reasons organizations have to outsource their

organization, such as financial savings, strategic focus, access to advance technology, reduce IT

licensing fees, strengthen security, improve service level, access to specialized expertise, reduce

personnel cost and organization politics (Belcourt, 2006). But there is no doubt that the main

reason for outsourcing is to reduce the cost of organization.

On the other side outsourcing involves some risk also. This outsourcing can cause the

organization to lose control of there IS operations, loss experienced and loyal IS employees and

can erode the organizations competitive advantages in the IS arena (Zabihollah Rezaee et al.,

2006). That’s why in evaluating their client’s internal control systems in such outsourcing

environments, auditors should focus on additional security measures by reviewing general EDP

controls of the outsourcer’s data centers, overall outsourcing agreements for contract

compliance, clients billing and other measures of data center efficiency and extent of surety

bonds or other devices to check on the outsourcers integrity (Simmons, 1997).

The auditor should follow the guidance of SAS no. 70, Reports on the processing of Transactions

by service organizations, as well as APS on implementing SAS no. 70 and consider relying on a

service auditor’s report (www.journalofaccountancy.com/issues). Auditors should also focus

on security issues by checking if the outsourcer shares valuable data and identifying specific,

local controls to prevent fraud and abuse especially when confidential information exists.




http://www.journalofaccountancy.com/issues

http://www.journalofaccountancy.com/issues




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Electronic Data Processing on auditing

EDP is an infrequently unused term for today what is usually called IS is the processing of data

by a computer and its programs in an environment involving electronic communication

(http://whatis.techtarget.com/definition/EDP-electronic-data-processing) . Electronic Data

processing (EDP) also known as Computer Information System and also known as IS/IT auditing

evolved as an extension of traditional auditing. The Electronic Data Processing is primarily

concerned with the use of computers in basic administrative and accounting system (Enejulu,

2006). Electronic Data Processing has revolutionized the data processing function and its impact

on auditing has been tremendous over the years.

Enejulu (2006) has stated that because more data has been processed electronically and

maintained in machine readable files such as magnetic disk and tapes which reduce the need for

certain historical records. The purpose of Electronic Data Processing is to remove the

redundancy of data in corporate files and minimize the number of files necessary to be stored and

produced (Merril, 2006). The increasing application of computers to accounting generally

results in a number of changes in the data processing system. Many of the attributes of an EDP

system affect the auditors and their work. The changed audit trail and computers speed,

accuracy, reliability, vulnerability and editing abilities require the auditor to examine thetraditional auditing procedures and adopt procedures that are most appropriate efficient and

effective for electronic data processing system (Boni, 2003). Braide (2008) have advised that an

understanding of electronic data processing of the terms and concepts in use and of the types of

control in electronic system is important for the auditors’ evaluation of the system of internal

control and of the use of computer in auditing.

According to auditing guideline (2003) the auditor needs to understand the concepts and

terminologies of data processing and control in order to be able to communicate with the EDP personnel. The auditor must interact with financial management and accounting personnel who

share the same language with him. In an EDP system, the auditor must interact with EDP

management and computer technicians. The high speed of the computer allows the auditors to

process and reprocess a complete file of transactions in less time than it would take to test a very

small sample manually. As a result of the integration of accounting and operating data in

http://whatis.techtarget.com/definition/EDP-electronic-data-processing

http://whatis.techtarget.com/definition/EDP-electronic-data-processing



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machine readable files and integrated database, the auditor can now be able to execute

accounting procedure.

In studying the impact of EDP on auditing several problems were identified as also highlightedin the studies of Reneau (2007) and Narrievalau (2003). Reneau (2007) highlighted the

problems of manpower while narrievalau (2003) have stated the problems associated with

electronic devices. The manpower to handle the systems is insufficient and not trained (Reneau,

2007). And also the several controls to be adopted to ensure that data are not tampered with

require skilled training which is not readily available to several client’s of the auditors

(Narrievalau 2003).

However The Institute of Chartered Accountants (ICA), 2003 highlights some of the benefits

of EDP such as EDP is effective in fraud control, it holds large data, it holds efficient filling of

data, it enhances internal control, it disallows alteration of figures, it makes data to be easily

retrievable, it is easily accessible, it is easily subjectable to several moderations, data can be

stored electronically and it is in compliance with modern technology. American Institute of

Certified Public Accountants (2004) has also reported that EDP aids efficiency and

effectiveness of an organization.

Because EDP is a very complex system some errors has been occurred during the processing of

data. One of the EDP errors is processing error. In an EDP environment processing error are

mainly caused by programming errors or systematic errors in the hardware or software. Because

of its complexity the control environment of EDP is even more critical than that in more simple

systems. The types of control in an EDP system are general controls and application controls.

General controls relate to the environment within which systems are developed, maintained and

operated. General controls are to ensure the integrity of application development and

implementation and to ensure that computer operations are properly administrated to protect

hardware, programmes and data files. The general controls are important for safeguarding EDP

equipments and records. On the other hand application controls are developed for purchases,

cash payments and inventory (ATE Paper 8- Auditing, David Chow, FCCA, FCPA, CPA).

That’s why it is important auditors have proper understanding about all the controls of EDP to

accurately perform their audit procedures for their clients.



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Auditing Effectiveness

Auditing Effectiveness is defined as the number and scope of deficiencies corrected following

the auditing process. Auditing is effective if it meets the intended outcome it is supposed to bring

about. Sawyer (1995) states that that the auditor’s job is not done until defects are corrected and

remain corrected.

Perhaps a key to being able to meet the requirements of improved efficiency and increased

effectiveness lies with the promise of continuous auditing. Continuous auditing can be described

as a “comprehensive electronic audit process that enables auditors to provide some degree of

assurance on continuous information simultaneously with, or shortly after, the disclosure of the

information” (Rezaee et al., 2002). Given the constant desire for timely and reliable information,

implementation of continuous auditing techniques combined with more frequent reporting can

reap benefits to the financial markets which rely on this information. Furthermore, given the

markets’ tendencies to react to strategically released earnings announcements in advance of

audited financial results, continuous auditing may help to curb reported abuses by enabling

detection of problems as they occur rather than at the end of a reporting period.

However in order to be able to execute continuous auditing, it seems clear that auditors will not

only have to increase their conceptual abilities in defending the techniques that are the

foundation of the continuous auditing process but also their technical skills in implementing

these techniques. A likely path that audit managers could use to bridge the gap between current

technological skills of an auditor and the skills that would be needed in a continuous audit is to

increase the usage and understanding of computer assisted audit tools and techniques especially

generalized audit software.

For the auditors to be effective, they have to follow International Standards on Auditing

(ISA) which are administrated and regulated through an independent body.

Van Gansberghe (2005) identified the following factors which influence audit effectiveness

Perceptions and ownership

Organization and governance framework



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Legislation

Improved professionalism

Conceptual framework

Resources

Relationship between Electronic Data Interchange, Client Server

Computing, Outsourcing and Electronic Data Processing

Researchers have studied the relationship between EDP and all these tools and technologies.

Electronic Data Interchange (EDI), Client Server Computing and Outsourcing all are tools and

techniques of Electronic Data Processing (Zabihollah Razaee et. Al. 2001). All these tools and

techniques of EDP signal the end of traditional audit (Zabihollah Razaee et. Al. 2001). Now in

a business environment increasingly driven by IT, mechanism or tools to monitor IT and

business operations controlled by IT as well as Information System that are properly planned and

working effectively (Epelle, 2002). The uses of all these emerging information technologies are

becoming increasingly complex affairs in this era of Electronic Data Processing (EDP). EDP has

changed the way organizations conduct its business, promoting operational efficiency and help

decision making (David Yang and Liming Guan, 2004). All the technologies of EDP such as

EDI, EFT, Client Server Computing, and Outsourcing caused the disappearance of traditional

audit (James ET. Al. 2001). According to Kim et. Al., (2009) emerging information

technologies such as EDI, Client Server Computing, Outsourcing have a large impact on

technology acceptance in the internal audit profession as influencing system usage, perceived

usefulness and perceived ease of use are high in basic features and low in advanced features.



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Relationship between Emerging Information Technology (EDI, Client

Server Computing, Outsourcing) and Auditing Effectiveness

If individuals who understand the nature of transactions are involved in performing data

processing online, the data entry process is less prone to errors than when it is performed by

individuals who are not familiar with the nature of transactions. Since auditors will have to make

more serious attempts to do a formal analysis of an organization’s e -commerce strategy with

SAS-94 the auditors need to understand the IT based/ dependent internal controls in order to

make their audit procedures to be more effective and efficient. To work with IT specialist’s

auditors need reasonable IT capabilities for conducting their audit procedures more efficiently

and effectively (Martinov & Roebuck, 1998). To make their auditing effective this IT

understanding is become more crucial as auditors are faced with accounting transactions entirely

in electronic form without supporting paper documentation (Martinov & Roebuck, 1998).

According to Lucy (1994), it is clear that organization that have adopted the application of

emerging information technologies such as EDI, EFT, Client Server Computing, Image

Processing, Outsourcing etc. have improved performance by the auditing department.

In order to make auditing more effective at the age of emerging information technology the

AICPA also published an Auditing Procedures Study (APS) entitled “The Information

Technology Age: Evidential Matter in the Electronic Environment” (1997). The APS also

describes electronic evidence and associated evaluation issues.

In this modern era, many accounting firms, internal and external auditors, and state and federal

agencies are now frequently using various types of emerging information technology/software in

the audit process. With the use of specialized software tools now auditors can provide their

client’s organizations with a unique and powerful combination of data access and compare

enterprise data, flat files or relational databases, spreadsheets, report files, on PCs or servers,

allowing the source data to remain intact for complete data quality and integrity (Robert and

Davis, 2003).



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Systems and Process Assurance (SPA) makes use of Computer- Assisted Audit Techniques

(CAATs) which provide a means of accessing large amounts of data in a format that can provide

transparency not attainable through other audit procedures. The use of CAATs increases audit

effectiveness which improves efficiency and decreases audit risks. In light of the increasing

demand on auditors to make the audit more effective and efficient, the use of most prominent

computer assisted audit tools and techniques (CAATTs) by auditors can increase audit efficiency

and effectiveness (Braun et al., 2003)

Conceptual Framework

Electronic Data

Interchange

Client Server Computing

Outsourcing

Electronic Data

Processing

AuditingEffectiv

eness



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Research Questions and Hypotheses

Questions

I. Is there any relationship between Electronic Data Processing and Auditing

Effectiveness?

II. Is there any relationship between Electronic Data Interchange and Electronic Data

Processing?

III. Is there any relationship between Client Server Computing and Electronic Data

Processing?

IV. Is there any relationship between Outsourcing and Electronic Data Processing?

V. Is there any relationship between Electronic Data Interchange and Auditing

Effectiveness?

VI. Is there any relationship between Client Server Computing and Auditing

Effectiveness?

VII. Is there any relationship between Outsourcing and Auditing Effectiveness?

Hypotheses

Ho1: There is no relationship between Electronic Data Processing and Auditing Effectiveness.

Ha1: There is a relationship between Electronic Data Processing and Auditing Effectiveness.

Ho2: There is no relationship between Electronic Data Interchange and Electronic Data

Processing.

Ha2: There is a relationship between Electronic Data Interchange and Electronic Data

Processing.



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Ho3: There is no relationship between Client Server Computing and Electronic Data Processing.

Ha3: There is a relationship between Client Server Computing and Electronic Data Processing.

Ho4: There is no relationship between Outsourcing and Electronic Data Processing.

Ha4: There is a relationship between Outsourcing and Electronic Data Processing.

Ho5: There is no relationship between Electronic Data Interchange and Auditing Effectiveness.

Ha5: There is a relationship between Electronic Data Interchange and Auditing Effectiveness.

Ho6: There is no relationship between Client Server Computing and Auditing Effectiveness.

Ha6: There is a relationship between Client Server Computing and Auditing Effectiveness.

Ho7: There is no relationship between Outsourcing and Auditing Effectiveness.

Ha7: There is a relationship between Outsourcing and Auditing Effectiveness.

Question Instrument

The measurement of the questionnaire items in this study is by means of “five-point of Liker

scale fr om 1 to 5” rating from To a very great extent to no extent at all, strongly agree to st rongly

disagree, not at all to To a great extent, effective to not effective and Strongly Disagree to

Strongly Agree. There are 5 variables to work with like as: Electronic Data Interchange, Client

Server Computing, Outsourcing, Electronic Data Processing and Auditing Effectiveness.

For an easy understanding and reading the questionnaire is designed into two parts. The first part

of the questionnaire is taking consideration in the demographic factor of the respondents. The

questions are designed with multiple choice selections for convenience. The second part of the

questionnaire is required the respondents to full up the questions about at which extent and how

much they agree or disagree about the benefit of all these IT applications and how much they

agree or disagree about the impact of information technology on auditing. All data collected are



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fed into the Statistical Package for Social Science (SPSS) for analysis. Total number of questions

of my questionnaire is 32 (without including Demographic question).

The Research Design, Methods and Procedure

Research design is a blueprint for data collection, measurement and analysis of data. It is the plan

and structure of investigation. Research design expresses both the structure of the research

problems. There are various types of Research design. Now which types of research design have

been used in our research has been described below:

1. The degree to which Research question has been crystallized

The Formal study: In our research we used formal study. The procedure of our research

is precise. It has so much hypothesis and research question. So our goal is to test the

hypothesis. That’s why we use Formal Study.

2. Method of Data Collection

Communication: Our research is a communication based research. We will do a survey

for our research to see consumer responses. We will distribute our research question to

our target consumers and take their responses.

3. Research Control of Variables

Experiment: In an experiment researcher can control or manipulate the variables in the

study. In our research we can also control or manipulate our independent variables such

as Electronic Data Interchange (EDI), Client Server Computing and Outsourcing. So our

research is an experiment study research.



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4. The purpose of the study

Causal – Explanatory study: Our research is a Causal – Explanatory study. In our study

we try to explain relationship among variables such as in our research we try to find out

relationship between Electronic Data Processing and Auditing Effectiveness and also try

to some other relationship in our research. That’s why our research is Causal –

Explanatory study.

5. The Time Dimension

Cross Sectional: The time dimension of our research is Cross Sectional. Our research is

carried out once, and represents a snapshot of once point in time.

6. The Topical scope

Statistical study: Statistical studies are designed for breadth rather than depth. In our

research we use breadth analysis rather than depth analysis. We attempt to capture a

population’s characteristics by making inferences from a sample’s characteristics. In our

research Hypothesis are also tested quantitatively. So our research is a statistical study

research.

7. The research environment

Field condition: Field condition means when research occurs under actual environment

condition. Our research is also field condition research. Our research will be done in the

actual environment with real customers to achieve real data. Through which we can get

real data from target consumers.



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8. The participants perceptions of research activity

Actual Routine: Under the participant perceptions our research is actual routine based

research. Because in our research participants perceive no deviation from everyday

routines.

Methodology

The methodology employed in obtaining information via a survey conducted on people who

have proper knowledge about IT. The survey questionnaire is designed and distributed to target

respondents randomly. Target respondents are employees of IT division, IT audit and senior

managers and executive officers who have proper knowledge about IT and effectiveness if IT on

auditing.

Sampling

It can’t be possible to ask each and every person of our target population and take data’s from

everyone. So to obtain all possible data we have conducted a sampling.

Sample unit

To work on this research first we need to know the demographic information of our target

consumers. We have done some categorization based on which we have decided our sample unit.

Age: Our target consumers should be in the age group of 15 – 50.

Income: Our target consumers would be the employees who work at IT dept. of an

organization and IT audit of an organization and also people who have huge amount of

knowledge about IT and their income should be BDT 5000 to above 40000.

Social class: Our target consumers should be upper middle class and upper class people.

Gender: Our target consumers can be both Male and Female employees.



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Location: The participants/target consumers are definitely from Dhaka City.

Sample size

In our research I have chosen a sample number of peoples whom I have done my questionnaire

survey. And the sample size of our research is 40 participants.

Procedure

Sample procedure is so important for sampling. Here we have used the non probability sample

procedure. As the researcher chose participants it is being called purposive sampling. Because i

have done my research by questionnaire and our sample size is only 40 . So it can’t be able to

give us the accurate information.

Data Collection

There are two types of Data collection Primary Data collection and Secondary Data collection. In

our research we used Primary Data and use Secondary Data also. We have collected primary data

from questionnaire which was distributed among 40 participants. All the participants of this

survey are people who are employees of IT Dept. of an organization and also people who have

basic knowledge about Information Technology. And we have collected secondary data from

Journals, Articles, News papers etc.



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Data Analysis

The graphical representation of the proposed framework presented the output and constitution of

relationship among the set of measured variables. This section has discussed the methods

employed the purpose of the study is to measure correlation among variables.

Quantitative Data Analysis

Here Data were quantified, verified and statistically manipulated. There were 40 respondents

who attended the survey. In this research there are more independent variables than dependent

variables and this analysis part is going to find out the relationship between those variables.

SPSS 17.0 has been used as the statistical tool for this research. In the SPSS 17.0 the research

focuses on Reliability test (Alpha), Hypothesis testing (Correlation Analysis). In below part of

the research there is analysis and interpretation of the data of the research which are conducted

by Reliability test (Alpha), Spears man and Pearson correlation analysis. Regression analysis

helps to understand how the typical value of the dependent variable changes when any one of the

independent variable is varied.

Descriptive Analysis

Descriptive Analysis is basically used to evaluate the demographic information included

personal and demographic information such as gender, age, income. And by using crosstabs here

I describe both together age and income, age and gender etc.

In my descriptive analysis there are three demographic profiles. Those are gender, age and

income. From the Table 1, gender section there were 37 male and 3 female out of 40. From

Table 2, age section there is no person which in age bracket of 15-25, 25 person in 26-35, 13

person in 36-45 and 02 person in 46 and above. From Table 3, income section there is no person

which in income bracket of BDT 5000-15000, 5 person in BDT 16000-25000, 5 person in BDT



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26000-35000 and 30 person in BDT 36000 and above. All this result you can find in Frequency

Table 01, 02 and 03 in the Appendix.

Reliability Analysis

Reliability analysis measures the relation between the variable and the questions of the research.

It shows that how much the questions are reliable in consideration with the variables. Reliability

analysis is conducted when researchers have 2 or more questions that will be summed to

determine a specific variable. Cronbach’s Alpha is a measure of internal consistency, that is, how

closely related a set of items as a group. Cronbach’s Alpha is a statistic used to determine the

internal consistency, that’s why if the value of Cronbach’s Alpha increases as the inter -

correlations among the items included in the analysis increases. If the questions on the survey or

items being tested have very high inter-correlations, the questions are considered to be measuring

different dimension of the same construct.

Electronic Data Interchange

Reliability Statistics

Cronbach's

Alpha N of Items

.758 9

First in the Reliability analysis of q1, q2, q3, q4, q5, q6, q7, q8, q9 with the variable “Electronic

Data Interchange” - the Cronbach’s Alpha is .758. According to George and Mallery (2003),

the Cronbach Alpha value should be between 0.5-0.6 which is sufficient and 0.7 and above is

considered as desirable or acceptable. The Cronbach Alpha for the 9 questions is .758 which is

desirable. So I can say all these 9 questions are reliable to measure the variable Electronic Data

Interchange.



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Outsourcing


Cronbach's

Alpha N of Items

.370 5

In the Reliability analysis of q10, q11, q12, q13, q14 with the variable “Outsourcing” – the

Cronbach’s Alpha for the 5 questions is .370 which is too low. This low cronbach’s we get after

looking “item deleted” because before looking “item deleted” we find (.370) which is very low

relatively this Cronbach’s. So this is proved that these 5 questions of Outsourcing have relatively

low internal consistency. So all these 5 questions are not reliable to define the variable

Outsourcing.

Client Server Computing


Cronbach's

Alpha N of Items

.818 7

In the Reliability analysis of q15, q16, q17, q18, q19, q20, q21 with the variable “Client Server

Computing” - the Cronbach’s Alpha for these 7 questions is .818 which is desirable. So I can

say all these 7 questions are reliable to measure the variable Client Server Computing.

Electronic Data Processing


Cronbach's

Alpha N of Items



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Cronbach's

Alpha N of Items

.466 7

In the Reliability analysis of q22, q23, q24, q25, q26, q27, q28 with the variable “ Electronic

Data Processing” – the Cronbach’s Alpha for these 7 questions is .466 which is considered as

sufficient. So this is proved that these 7 questions are reliable to measure the variable Electronic

Data Processing.

Auditing Effectiveness


Cronbach's

Alpha N of Items

.705 4

In the Reliability analysis of q29, q30, q31, q32 with the variable “Auditing Effectiveness” - theCronbach’s Alpha for these 4 questions is .705 which is desirable. So I can say all these 4

questions are reliable to measure the variable Auditing Effectiveness.

Hypothesis Testing (Correlation Analysis)

A Statistical hypothetic test is a method of making decisions using data from a scientific study.

Hypothesis testing refers to the process of choosing between competing hypotheses about a

probability distribution, based on observed data from the distribution. It is a core topic in

mathematical statistics, and indeed is a fundamental part of the language of statistics.



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Spearman Correlation

Spearman’s Correlation coefficient is s statistical measure of the strength of a monotonic

relationship between paired data.

We can thus express correlation coefficient test as

Ho: p= 0

Ha: P≠ 0

According to Spearman correlation if correlation coefficient is not equal to 0 and the Sig (2-

Tailed) value is greater than .05 so you can conclude that there is no significant relationship

between your two variables.

On the other hand if correlation coefficient is not equal to 0 the Sig (2-Tailed) value is less

than.05 then you can conclude that there is a significant relationship between your two variables.

Hypotheses 1

Correlations

Electronic Data

Processing

(EDP)

Auditing

Effectiveness

Spearman's rho Electronic Data Processing

(EDP)

Correlation Coefficient 1.000 -.055

Sig. (2-tailed) . .738

N 40 40

Auditing Effectiveness Correlation Coefficient -.055 1.000

Sig. (2-tailed) .738 .

N 40 40

Here Correlation coefficient is not equal to 0 but significance alpha (α) is greater than .05. So

according to Spearman correlation there is no relationship between Electronic Data Processing

and Auditing Effectiveness. So Ho is accepted.



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Hypotheses 2

Correlations

Electronic Data

Interchange

(EDI)

Electronic Data

Processing

(EDP)

Spearman's rho Electronic Data Interchange

(EDI)

Correlation Coefficient 1.000 .269


N 40 40


(EDP)

Correlation Coefficient .269 1.000


N 40 40


according to Spearman correlation there is no relationship between Electronic Data Interchange

and Electronic Data Processing. So Ho is accepted.

Hypotheses 3

Correlations

Client Server

Computing

Electronic Data

Processing

(EDP)

Spearman's rho Client Server Computing Correlation Coefficient 1.000 -.182


N 40 40


(EDP)

Correlation Coefficient -.182 1.000


N 40 40



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according to Spearman correlation there is no relationship between Client Server Computing and

Electronic Data Processing. So Ho is accepted.

Hypotheses 4

Correlations

Outsourcing

Electronic Data

Processing

(EDP)

Spearman's rho Outsourcing Correlation Coefficient 1.000 .405**


N 40 40


(EDP)

Correlation Coefficient .405** 1.000


N 40 40

**. Correlation is significant at the 0.01 level (2-tailed).

Here Correlation coefficient is not equal to 0 and signif icance alpha (α) is also less than .05. So

according to Spearman correlation there is a relationship between Outsourcing and Electronic

Data Processing. Outsourcing and Electronic Data Processing is (100-.01) = 99% positively

related. So Ha is accepted

Hypotheses 5

Correlations

Electronic Data

Interchange

(EDI)

Auditing

Effectiveness

Spearman's rho Electronic Data Interchange Correlation Coefficient 1.000 .173



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(EDI) Sig. (2-tailed) . .284

N 40 40

Auditing Effectiveness Correlation Coefficient .173 1.000


N 40 40


according to Spearman correlation there is no relationship between Electronic Data Interchange

and Auditing Effectiveness. So Ho is accepted.

Hypotheses 6

Correlations

Client Server

Computing

Auditing

Effectiveness

Spearman's rho Client Server Computing Correlation Coefficient 1.000 .124


N 40 40



N 40 40


according to Spearman correlation there is no relationship between Client Server Computing and

Auditing Effectiveness. So Ho is accepted.



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Hypotheses 7

Correlations

Outsourcing

Auditing

Effectiveness

Spearman's rho Outsourcing Correlation Coefficient 1.000 -.107


N 40 40



N 40 40


according to Spearman correlation there is no relationship between Outsourcing and Auditing

Effectiveness. So Ho is accepted.

Pearson Correlation

The most common measure of correlation in statistics is the Pearson Correlation. Pearson

Correlation defines the strength of relationship between variables.

Hypotheses 1

Correlations

Electronic Data

Processing

(EDP)

Auditing

Effectiveness


(EDP)

Pearson Correlation 1 -.085

Sig. (2-tailed) .603

N 40 40



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Auditing Effectiveness Pearson Correlation -.085 1


N 40 40

According to Pearson’s correlation coefficient theory we can see that the value of Electronic

Data Processing and Auditing Effectiveness is -.085. So there is no relationship between them.

As we know if value is .00 to +1 then it would be positive relationship but here we can see our

value is -.085 then there is a negative relationship. And the value of p is also greater than .05. It

indicates that null hypotheses are true. There is no relationship between them.

Hypotheses 2

Correlations

Electronic Data

Interchange

(EDI)

Electronic Data

Processing

(EDP)


(EDI)

Pearson Correlation 1 .362*


N 40 40


(EDP)

Pearson Correlation .362* 1


N 40 40

*. Correlation is significant at the 0.05 level (2-tailed).


Data Interchange and Electronic Data Processing is .362. So there is a relationship between

them.

As we know if value is .00 to +1 then it would be positive relationship and here we can see our

value is +.362 then it is also a positive relationship. There is 36.2% relationship between

Electronic Data Interchange and Electronic Data Processing. And the value of p is also less than



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.05 which is .022. So it clearly indicates that the alternative hypothesis is true. There is a

moderate relationship between them because its value is between .30-44.

.

Hypotheses 3

Correlations

Client Server

Computing

Electronic Data

Processing

(EDP)

Client Server Computing Pearson Correlation 1 -.276


N 40 40


(EDP)

Pearson Correlation -.276 1


N 40 40

According to Pearson’s correlation coefficient theory we can see that the value of Client Server

Computing and Electronic Data Processing is -.276. So there is no relationship between them.


value is -.276 then it is a negative relationship. And the value of p is also greater than .05. It

indicates that null hypotheses are true. There is no relationship between them.

Hypotheses 4

Correlations

Outsourcing

Electronic Data

Processing

(EDP)



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Outsourcing Pearson Correlation 1 .456**


N 40 40


(EDP)

Pearson Correlation .456** 1


N 40 40


According to Pearson’s correlation coefficient theory we can see that the value of Outsourcing

and Electronic Data Processing is .456. So there is a relationship between them.


value is +.456 then it is also a positive relationship. There is 45.6% relationship between

Outsourcing and Electronic Data Processing. And the value of p is also less than .05 which is

.003. So it clearly indicates that the alternative hypothesis is true. There is a strong relationship

between them because its value is more than .45/45%.

Hypotheses 5

Correlations

Electronic Data

Interchange

(EDI)

Auditing

Effectiveness


(EDI)

Pearson Correlation 1 .068


N 40 40

Auditing Effectiveness Pearson Correlation .068 1


N 40 40



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Data Interchange and Auditing Effectiveness is .068. So there is a relationship between them.

As we know if value is .00 to +1 then it would be positive relationship and here we can see ourvalue is +.068 then it is also a positive relationship. There is 6.8% relationship between

Electronic Data Interchange and Auditing Effectiveness. So it clearly indicates that the

alternative hypothesis is true. There is a low moderate relationship between them because its

value less than 0.30.

Hypotheses 6

Correlations

Client Server

Computing

Auditing

Effectiveness

Client Server Computing Pearson Correlation 1 .181


N 40 40



N 40 40

According to Pearson’s correlation coefficient theory we can see that the value of Client Server

Computing and Auditing Effectiveness is .181. So there is a relationship between them.


value is +.181 then it is also a positive relationship. There is 18.1% relationship between Client

Server Computing and Auditing Effectiveness. So it clearly indicates that the alternative

hypothesis is true. There is a low moderate relationship between them because its value less than

0.30.



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Hypotheses 7

Correlations

Outsourcing

Auditing

Effectiveness

Outsourcing Pearson Correlation 1 -.212


N 40 40



N 40 40

According to Pearson’s correlation coefficient theory we can see that the value of Outsourcing

and Auditing Effectiveness is -.212. So there is no relationship between them.


value is -.212 then it is a negative relationship. It indicates that null hypotheses are true. There is

no relationship between them.

Regression Analysis

Linear regression analysis estimates the coefficients of a linear equation, involving one or more

independent variables (that best predict the value of the dependent variable).

R - R is the square root of R-Squared and is the correlation between the observed and predicted

values of dependent variable. R-Square - This is the proportion of variance in the dependent

variable which can be explained by the independent variables. Adjusted R-square - This is an

adjustment of the R-squared that penalizes the addition of extraneous predictors to the model.

Adjusted R-squared is computed using the formula 1 - ((1 - Rsq) ((N - 1) /( N - k - 1)) where k is

the number of predictors.



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Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .085a .007 -.019 .59797

a. Predictors: (Constant), Electronic Data Processing (EDP)

From the table, R value is .085. "R-Square"' tell us that .7% of the dependent variable is

explained by independent variables.

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .098 1 .098 .275 .603a

Residual 13.588 38 .358

Total 13.686 39


b. Dependent Variable: Auditing Effectiveness

Typically, if “Sig” is greater than 0.05, we conclude that our model could not fit the data . And

our sig is greater than .05 so we conclude the model not fit the data. Our sig is .603.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .534a .285 .226 .37336

a. Predictors: (Constant), Client Server Computing, Electronic Data

Interchange (EDI), Outsourcing

From the table, R value is .534. "R-Square"' tell us that 28.5% of the dependent variable is




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ANOVAb

Model Sum of Squares Df Mean Square F Sig.

1 Regression 2.002 3 .667 4.786 .007a

Residual 5.018 36 .139

Total 7.020 39

a. Predictors: (Constant), Client Server Computing, Electronic Data Interchange (EDI), Outsourcing

b. Dependent Variable: Electronic Data Processing (EDP)

Typically, if “Sig” is greater than 0.05, we conclude that our model could not fit the data . But our

sig is less than .05 so we conclude the model fit the data. If the value of Sig is < .05, then the

model is significant at 95%. Our sig is .007.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .274a .075 -.002 .59299

a. Predictors: (Constant), Outsourcing, Electronic Data Interchange

(EDI), Client Server Computing

From the table, R value is .274. "R-Square"' tell us that 7.5% of the dependent variable is


ANOVAb


1 Regression 1.027 3 .342 .974 .416a

Residual 12.659 36 .352

Total 13.686 39

a. Predictors: (Constant), Outsourcing, Electronic Data Interchange (EDI), Client Server Computing




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Typically, if “Sig” is greater than 0.05, we conclude that our model could not fit the data . And

our sig is greater than .05 so we conclude the model not fit the data. Our sig is .416.

Limitations

There were some problems that I have to face while doing this study which undermines the value

and validity of this particular research. All the limitations of my research have been listed below:

Time is a huge factor in my research. I have got limited time to do my research.

Since I have used non probability sampling. It was really hard to get 40 questionnaire fill

up in several organizations. Because the participants of my questionnaire are employees

of IT Dept. and also people who have huge amount of knowledge about IT. It was really

hard to got their appointment and convince them to fill up my questionnaire paper.

That’s why I have faced some problems during the interview. Most of my participants

were not willing to give the interview.

Because I am a student that’s why many participants didn’t take the research very

seriously.

Sometimes participants felt uncomfortable to discuss about the research topic or not

sharing their own observation, behaviors and attitudes with a single person.

Lastly only one data collection method which is questionnaire survey was used in the

entire study making the study less reliable to various interpretation and validity.



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Conclusion

Today, from this research we can say as technological changes occur more quickly auditors must

keep pace with emerging information technological changes and their impacts on their client’s

data processing system as well as their own audit procedures. But unfortunately from our

research we can say that auditors don’t have proper knowledge about all these IT applications

that’s why it will be really hard for them to properly audit an organization because more

electronic evidence has been given to them than traditional evidence by organizations. Because

of all these information technology and also because of the use of e-commerce the characteristics

and transactions of business of organizations is been changing very rapidly. That’s why it is

really important that audit firm should provide proper training to auditors by technological expertso that they can be able to perform their auditing more effectively and efficiently. And slowly

but steadily many audit firms is starting to adopt the use of Computer Assisted Audit Techniques

(CAATs) whose major goals of increasing the quality of audit work, speed rate and expand their

market share through acquiring new clients and generally improve the performance of auditors

have been achieved. To cope up with this technological change auditor should soon need to form

their accounting transaction entirely in electronic form without any paper documentation. After a

scientific and descriptive research it has been found although our participants think that the

impact of emerging information technology on auditing is very high but they also agree that

auditors still don’t have enough knowledge about this IT applications that’s why a question mark

always arise about the effectiveness and efficiency of auditing. The future holds great challenges

for auditors and riding full speed through the information superhighway will be the only way to

face those challenges. That’s why we can say in this modern era the impact of this emerging

information technology on audit procedure is high and quickly auditors need to adapt and

understand about all these IT applications will help them a lot in future to properly perform their

auditing more effectively and efficiently.



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Appendix I

QUESTIONNAIRE

Personal Information:

1. Male Female

2. Age: 3. Income:

15-25 5000-15000 Taka

26-35 16000-25000 Taka

36-45 26000-35000 Taka

46 and above 36000 and above

AA.. EElleeccttrroonniicc DDaattaa IInntteerrcchhaannggee ((EEDDII))

1 2 3 4 5

To a very great

extent

To a great

extent

To a moderate

extent

To a small extent To no extent at all

Please Circle or Sign the number which most closely responds to your thinking

1. EDI reduce paper work.

2. EDI reduce errors of the organization.

3. EDI improve customer service.

4. EDI enhance competitive capacity.

5. EDI reduce manpower per task.

6. EDI improve security.

7. EDI reduce inventory and communication cost.

8. EDI improve trading partner relationship.

9. EDI reduce data entry

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

Part B

Part A

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5



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BB.. OOuuttssoouurrcciinngg

1 2 3 4 5

Strongly Agree Agree Neutral Disagree Strongly

Disagree

10. Outsourcing reduces cost of the organization.

11. Outsourcing provides flexibility to an organization.

12. Outsourcing improves services.

13. Outsourcing provides access to specialized vendors.

14. Outsourcing provides focus on core competence.

CC.. CClliieenntt SSeerrvveerr ccoommppuuttiinngg

1 2 3 4 5

Not at all To a small

extent

To a moderate

extent

To a very great

extent

To a great

extent

15. Client Server system increase productivity.

16. Client Server system manage and control information better.

17. Client server system increase organization flexibility.

18. Client Server system increase profit and revenue.

19. Client server system creates new product and services.

20. Client Server system create new sales opportunities.

21. Client Server system create external linkages with suppliers

and customers.

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5



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DD.. EElleeccttrroonniicc DDaattaa PPrroocceessssiinngg ((EEDDPP))

1 2 3 4 5

Effective Very effective Neither effective

nor not effective

Not very

effective

Not effective

22. EDP holds large amount of data.

23. EDP controls fraud.

24. EDP enhances internal control of data.

25. Lost data can be easily retrievable at EDP.

26. In EDP, alteration of figure is nearly impossible.

27. In EDP, stored data can be easily accessible.

28. EDP is in compliance with modern technology.

EE.. AAuuddiittiinngg EEf f f f eeccttiivveenneessss

1 2 3 4 5

Strongly

Disagree

Disagree Not Sure Agree Strongly Agree

29. Now the effectiveness of auditing is effected by emerging

information technology.

30. In order to be effective IT understanding for auditor is become crucial

as auditors are faced with transactions entirely in electronic form.

31. Now audit firms offer training in relation to the adaption

of CAATs.

32. Auditors conduct through and comprehensive investigation

to produce effective auditing.

Thank you

Your ooperation is highly appreciated

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 51 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5



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Appendix II

Data Analysis

SPSS

Descriptive Analysis

Frequencies

Table 1

Gender

Frequency Percent Valid Percent

Cumulative

Percent

Valid Male 37 92.5 92.5 92.5

Female 3 7.5 7.5 100.0

Total 40 100.0 100.0

Table 2

Age


Cumulative

Percent

Valid 26-35 25 62.5 62.5 62.5

36-45 13 32.5 32.5 95.0

46 and above 2 5.0 5.0 100.0

Total 40 100.0 100.0



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Table 3

Income


Cumulative

Percent

Valid 16000-25000 5 12.5 12.5 12.5

26000-35000 5 12.5 12.5 25.0

36000 and above 30 75.0 75.0 100.0

Total 40 100.0 100.0

Crosstabs

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Gender * Age 40 100.0% 0 .0% 40 100.0%

Gender * Age Crosstabulation

Count

Age

Total26-35 36-45 46 and above

Gender Male 22 13 2 37

Female 3 0 0 3

Total 25 13 2 40


Cases



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Valid Missing Total

N Percent N Percent N Percent

Income * Age 40 100.0% 0 .0% 40 100.0%

Income * Age Crosstabulation

Count

Age

Total26-35 36-45 46 and above

Income 16000-25000 5 0 0 5

26000-35000 4 1 0 5

36000 and above 16 12 2 30

Total 25 13 2 40

Descriptives

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Gender 40 1.00 2.00 1.0750 .26675

Age 40 2.00 4.00 2.4250 .59431

Valid N (listwise) 40

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Age 40 2.00 4.00 2.4250 .59431

Income 40 2.00 4.00 3.6250 .70484

Valid N (listwise) 40



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Reliability

[DataSet1] E:\Document\my University document\Internship

report\Internship.sav

Scale: Electronic Data Interchange (EDI)

[


N %

Cases Valid 40 100.0

Excludeda 0 .0

Total 40 100.0

a. Listwise deletion based on all variables in the

procedure.


Cronbach's

Alpha N of Items

.758 9

Reliability



Scale: Outsourcing


N %


Excludeda 0 .0

Total 40 100.0


procedure.



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Cronbach's

Alpha N of Items

.370 5

Reliability



Scale: Client Server Computing


N %


Excludeda 0 .0

Total 40 100.0


procedure.


Cronbach's

Alpha N of Items

.818 7

Reliability





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Scale: Electronic Data Processing (EDP)

[


N %


Excludeda 0 .0

Total 40 100.0


procedure.


Cronbach's

Alpha N of Items

.466 7

Reliability



Scale: Auditing Effectiveness


N %


Excludeda 0 .0

Total 40 100.0


procedure.



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Cronbach's

Alpha N of Items

.705 4

Nonparametric Correlations



Correlations

Electronic Data

Processing

(EDP)

Auditing

Effectiveness

Spearman's rho Electronic Data Processing

(EDP)

Correlation Coefficient 1.000 -.055


N 40 40



N 40 40




Correlations

Electronic Data

Interchange

(EDI)

Electronic Data

Processing

(EDP)



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(EDI)



N 40 40


(EDP)

Correlation Coefficient .269 1.000


N 40 40




Correlations

Client Server

Computing

Electronic Data

Processing

(EDP)

Spearman's rho Client Server Computing Correlation Coefficient 1.000 -.182


N 40 40


(EDP)

Correlation Coefficient -.182 1.000


N 40 40




Correlations

Outsourcing

Electronic Data

Processing

(EDP)

Spearman's rho Outsourcing Correlation Coefficient 1.000 .405**




IUB 78

N 40 40


(EDP)

Correlation Coefficient .405** 1.000


N 40 40





Correlations

Electronic Data

Interchange

(EDI)

Auditing

Effectiveness


(EDI)



N 40 40



N 40 40




Correlations

Client Server

Computing

Auditing

Effectiveness

Spearman's rho Client Server Computing Correlation Coefficient 1.000 .124


N 40 40



IUB 79



N 40 40




Correlations

Outsourcing

Auditing

Effectiveness

Spearman's rho Outsourcing Correlation Coefficient 1.000 -.107


N 40 40



N 40 40

Correlations



Correlations

Electronic Data

Processing

(EDP)

Auditing

Effectiveness


(EDP)



N 40 40





IUB 80

Correlations

Electronic Data

Processing

(EDP)

Auditing

Effectiveness


(EDP)



N 40 40



N 40 40

Correlations



Correlations

Electronic Data

Interchange

(EDI)

Electronic Data

Processing

(EDP)


(EDI)

Pearson Correlation 1 .362*


N 40 40


(EDP)

Pearson Correlation .362* 1


N 40 40

*. Correlation is significant at the 0.05 level (2-tailed).

Correlations



Correlations



IUB 81

Client Server

Computing

Electronic Data

Processing

(EDP)

Client Server Computing Pearson Correlation 1 -.276


N 40 40


(EDP)

Pearson Correlation -.276 1


N 40 40

Correlations



Correlations

Outsourcing

Electronic Data

Processing

(EDP)

Outsourcing Pearson Correlation 1 .456

**


N 40 40


(EDP)

Pearson Correlation .456** 1


N 40 40


Correlations



Correlations



IUB 82

Electronic Data

Interchange

(EDI)

Auditing

Effectiveness


(EDI)

Pearson Correlation 1 .068


N 40 40



N 40 40

Correlations



Correlations

Client Server

Computing

Auditing

Effectiveness

Client Server Computing Pearson Correlation 1 .181


N 40 40



N 40 40

Correlations



Correlations

Outsourcing

Auditing

Effectiveness



IUB 83

Outsourcing Pearson Correlation 1 -.212


N 40 40



N 40 40

Regression

[DataSet1] E:\Document\my University document\Internshipreport\Internship.sav

Variables Entered/Removed

Model

Variables

Entered

Variables

Removed Method

1 Electronic Data

Processing

(EDP)a

. Enter

a. All requested variables entered.


Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .085a .007 -.019 .59797


ANOVAb


1 Regression .098 1 .098 .275 .603a



IUB 84

Residual 13.588 38 .358

Total 13.686 39



Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig.B Std. Error Beta

1 (Constant) 4.209 .421 9.997 .000


(EDP)

-.118 .226 -.085 -.525 .603

a. Dependent Variable: Auditing Effectiveness

Regression




Model

Variables

Entered

Variables

Removed Method

1 Client Server

Computing,

Electronic Data

Interchange

(EDI),

Outsourcinga

. Enter


Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate



IUB 85

1 .534a .285 .226 .37336

a. Predictors: (Constant), Client Server Computing, Electronic Data

Interchange (EDI), Outsourcing

ANOVAb


1 Regression 2.002 3 .667 4.786 .007a

Residual 5.018 36 .139

Total 7.020 39

a. Predictors: (Constant), Client Server Computing, Electronic Data Interchange (EDI), Outsourcing

b. Dependent Variable: Electronic Data Processing (EDP)

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients


1 (Constant) .944 .524 1.802 .080


(EDI)

.215 .122 .258 1.765 .086

Outsourcing .349 .159 .341 2.201 .034

Client Server Computing -.071 .081 -.131 -.872 .389

a. Dependent Variable: Electronic Data Processing (EDP)

Regression

[DataSet1] E:\Document\my University document\Internshipreport\Internship.sav


Model

Variables

Entered

Variables

Removed Method



IUB 86

1 Outsourcing,

Electronic Data

Interchange

(EDI), Client

Server

Computinga

. Enter


Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .274a .075 -.002 .59299

a. Predictors: (Constant), Outsourcing, Electronic Data Interchange

(EDI), Client Server Computing

ANOVAb


1 Regression 1.027 3 .342 .974 .416a

Residual 12.659 36 .352

Total 13.686 39

a. Predictors: (Constant), Outsourcing, Electronic Data Interchange (EDI), Client Server Computing


Coefficientsa

Model

Unstandardized CoefficientsStandardizedCoefficients


1 (Constant) 3.856 .832 4.634 .000


(EDI)

.158 .194 .136 .815 .420



Client Server Computing .093 .129 .123 .721 .476

Outsourcing -.293 .252 -.205 -1.164 .252

a. Dependent Variable: Auditing Effectiveness

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